Pricing & rates · Travelers + trade
Gross rate
Also called gross price, commissionable price
The short answerA price that already includes the seller's commission; the seller keeps its share and passes the rest to the rental company.
What it means
A gross rate is the price that includes the reseller's commission. The customer pays the gross amount; the rental company receives it less the agreed commission. It's the opposite of a net rate, where the reseller adds its own margin on top.
Why it matters
Gross and net deals produce the same customer price in different ways, and they change who controls the final price and how money flows between seller and supplier.
Example
Example only: gross rate 120 with 20% commission. The customer pays 120, the seller earns 24 and the rental company receives 96.
Related terms
- Net rateThe price a rental company charges a reseller before the reseller adds its own margin.
- CommissionA percentage of the rental price paid to the agent or partner who made the sale.
- Markup / marginMarkup is profit as a share of cost; margin is profit as a share of the selling price. Same profit, different percentages.
Also related Commissionable rate, Settlement